SKIL Infrastructure Ltd (formerly Sea King Infrastructure Ltd), promoted by Nikhil Gandhi, has sought clearance from the Foreign Investment Promotion Board (FIPB) to sell a 26% stake in the Mumbai-based infrastructure company to US-based hedge fund manager Avenue Capital Group for about $500 million (Rs2,050 crore).
“Avenue Capital is buying a 26% stake in SKIL Infrastructure Ltd for about $500 million. The money raised through a new issue of shares will be utilized to fund various infrastructure projects such as tourism and shipyard,” said an SKIL Infrastructure official, who did not wish to be identified. He declined to provide more details citing a “confidentiality agreement signed between the two parties”.
FIPB, the apex government body that rules on foreign investments in Indian companies, is slated to discuss the proposal on 22 June.
SKIL is setting up the largest shipyard in India and the fifth biggest in the world within the vicinity of Pipavav Port in Gujarat. The port will have the capability to build ships of three lakh tonnes such as very large crude carriers, liquefied natural gas carriers, tankers, product carriers, bulk carriers, container ships, jack-up rigs, and oil and gas platforms.
The company is also building a tourism-led special economic zone spread across Waknaghat, Suna and Manali regions of Himachal Pradesh at a cost of Rs10,900 crore. The project envisages construction of an international airport, a hill station that would support several new industries, a ski village, a food and fruit export processing zone, five-star hotels and possibly a luxury train service on the lines of the Palace on Wheels.
The project would be taken up in two phases and the first phase would cost around Rs4,200 crore.
The stake purchase will entitle Avenue Capital to have one or two representatives on the board of SKIL, said the official.